Badger Meter Surpasses Expectations with 5% Sequential Sales Growth in Q3 2026
Badger Meter, a leading provider of flow measurement and control solutions, has reported strong sales growth in the third quarter of 2026. According to the company's recent conference call transcript, Badger Meter achieved a 5% sequential increase in base sales, excluding the revenue contribution from its UDlive acquisition, which was finalized on May 1st, 2026.
Ken Bockhorst, Chairman, President, and Chief Executive Officer of Badger Meter, expressed satisfaction with the company's performance during the quarter. He noted that the solid revenue contribution of the UDlive acquisition helped to boost sales, while the ongoing ramp of previously disclosed awarded projects also contributed to the growth momentum.
Badger Meter's operating profit performance was equally impressive, with a 4% year-over-year increase in operating earnings and a 60 basis point expansion in operating margins to 20.2%. The company's base operating profit margins, excluding UDlive, were even higher at 20.9%, up 130 basis points from the same period last year.
The company's gross margin also expanded significantly, rising by 120 basis points to 41.9% compared to the third quarter of 2025. This was primarily driven by structural mix improvements, with higher ultrasonic meter sales and continued growth in software-as-a-service revenue contributing to the increase. Base gross margin was 42.1%, at the top end of Badger Meter's normalized range.
Badger Meter's Chief Financial Officer, Dan Weltzien, noted that the company has thus far been able to mitigate the impact of electronic component cost and availability pressures on its margins. However, he emphasized that these challenges have not abated and will likely continue to pose difficulties for the company in the future.
Looking ahead, Badger Meter is optimistic about its growth prospects. The company expects both sequential and year-over-year improvement in revenue in the fourth quarter of 2026, with management anticipating sustained growth momentum into 2027.
